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Author: 


Gordon,  Fred  George 
Russ 

Title: 

The  government 
ownership  of  railways 

Place: 

Chicago 

Date: 

[1 898] 


9'/'25009<  '3 


MASTER   NEGATIVE  * 


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I 


Gordon,  Fred  George  Russ,  1860- 

The  government  oimership  of  rail'ways,  by  P.  G, 
R.  Gordon  •••   Chicago,  Charles  H.  Kerr  &  co« 
{1898, 

15  p,   (Unity  library,  no*  88.) 

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trhe  aoverntnent  Ownership 


of  Railways 


By  F.  Q.  R.  GORDON 

MANCHESTER,  N.  H. 


<^   ~  x^ 


UWITY   LlBKART.    NO.   88.  MONTHLY,  $3.00  A  YEAR.  NOVKMBEK.   1898 

Entered  at  the  post-office,  Chicago,  as  second-class  matter. 


Extra  copies  of  this  issue  will  be  mailed  for  five  cents  each,  lo  for 

35  cents,  100  for  $2.00 


71 


CHARLES  H.  KERR  &  COHPANY 

PUBLISHERS  OF  SOCIAL  REFORM  LITERATURE 

56  FIFTH  AVENUE,  CHICAGO 


THE  GOVERNMENT  OWNERSHIP  OF  RAILROADS 

BY  P.  0.  R.  GORDON. 

Hon.  Edward  Atkinson,  the  noted  political  economist, 
estimates  that  into  the  cost  of  every  article  there  is  an 
average  expense  of  8  per  cent  for  transportation. 

Whether  the  Government— the  people — shall  own  the 
railroads  or  the  railroads  own  the  people  and  the  Govern- 
ment is  a  question  that  will  in  the  near  future  be  discussed 
in  every  town,  village  and  hamlet  in  this  country. 

The  railway  is  a  necessity.  The  nationalization  of  rail- 
ways is  a  perfectly  sound  commercial  undertaking,  and  its 
realization  will  confer  untold  blessings  and  benefits  upon 
the  whole  people.  Within  the  last  quarter  of  a  century  the- 
railway  system  of  the  United  States  has  assumed  vast  pro- 
portions. The  number  of  miles  of  railway  in  operationi 
for  1896  in  this  country  was  179,162.18. '  The  capital 
stock,  funded  debt,  unfunded  debt  and  current  accounts 
amounted  to  $11,670,901,614,  truly  a  gigantic  sum.  The* 
net  earnings  for  1895  were  $327,505,242.  The  business 
panic  which  has  lasted  for  the  past  several  years  decreased 
earnings  and  must  be  taken  into  consideration.  In  189S 
the  net  earnings  were  $364,591,109. 

When  the  history  of  the  construction,  management  and 
operation  of  the  railway  system  of  the  United  States  shall 
be  recorded  we  will  have  a  history  of  fraud,  political  cor- 
ruption and  grand  larceny  against  the  people. 

In  the  first  place  the  huge  deals  and  illegitimate  profits 
from  construction  are  most  appalling.  Let  me  illustrate 
how  we,  the  people,  build  their  railways.  First,  a  charter 
ir  secured,  generally  by  political  corruption,  for  the  right 
of  way.  The  road  will  cost  perhaps  $25,000  a  mile  to 
build  and  equip;  it  will  be  capitalized  at  $60,000  per  mile 
(average  in  United  States).  Trusty  agents  and  subsidized 
press  work  up  a  "patriotic"  sentiment  in  the  counties, 
towns  and  cities  through  which  the  roa^  will  be  built.     As 


a  result  many  thousands  of  dollars  in  gratuities,  valuable 
land  sites  for  depots,  sidings,  etc.,  are  given  the  road. 
Hundreds  of  towns,  cities  and  counties  are  in  debt  to-day 
due  to  such  "patriotism."  After  a  railway  corporation  has 
secured  a  charter  and  everything  is  ready,  its  promoters 
furnish  no  money  whatever  to  build  the  road.  Some  one 
else  does  that,  and  it  is  accomplished  in  this  way:  First, 
mortgage  bonds  are  issued,  placed  upon  the  market  and 
sold  for  cash.  This  cash  is  what  buys  labor  and  materials. 
Another  set  of  bonds  is  issued  to  buy  rolling  stock. 

About  this  time  the  "owners"  think  a  big  lake  of  water 
necessary,  and  the  road  will  be  watered  up  to  double  its 
cost.  Notwithstanding  the  fact  that  our  roads  are  capital- 
ized at  over  eleven  billions  of  dollars,  the  honest  value  is 
much  less  than  four  billions  of  dollars.  The  New  York 
Central  and  Hudson  River  Railroad  in  1869  was  capitalized 
at  $45,000,000.  In  one  year  it  was  watered  up  to  $1)0,000,- 
000.  "Sound  business  management"  has  since  added  more 
water,  until  now  the  road  is  capitalized  at  $146,000,000. 

For  the  year  ended  June  30,  1896,  the  total  earnings  of 
this  road  were  $45,144,967.  The  operating  expenses  were 
$30,455,570,  leaving  as  net  earnings  the  sum  of  $14,689,- 
397.  The  other  great  railway  systems  are  just  as  bad  as 
the  N.  Y.  C.  &  H.  R.  R.  R.  Here  is  the  point  to  look  at: 
The  men — the  corporations — who  first  charter  and  build 
a  railroad  furnish  very  little  capital.  The  railroads  of 
this  country  have  been  built  on  borrowed  capital.  The 
railway  corporations  make  the  effort  to  pay,  not  only  di\i- 
dends  on  the  capital  of  the  road,  but  also  interest  on  the 
debt,  which  the  road  owes  to  the  bondholders.  Here  are 
two  sets  of  dividends;  but  this  does  not  satisfy  our  rail- 
road kings,  hence  they  water  up  the  stock  to  double  or 
quadruple  its  first  cost,  and  the  dear  public,  which  the 
modern  capitalist  loves  so  well,  is  forced  to  pay  three  or 
four  sets  of  dividends.  This  getting  of  something  for 
nothing  has  made  the  millions  of  Gould,  Sage,  Vanderbilt 
and  others. 

That  our  railroads  are  in  politics  every  intelligent  per- 
son knows.  They  control  Statr  Legislatures,  Concrress  and 
even  the  courts.  The  greatest  lobby  that  ever  existed  is 
the  railroad  lobby.  If  any  there  be  who  are  disposed  to 
dispute  this  statement,  let  them  read  the  following  from 
the  New  York  Board  of  Trade  and  Transportation:  "That 


»' 


(■■ 


they— the  railroads— control  absolutely  the  Legislatures 
of  a  majority  of  the  States  of  the  Union;  make  and  unmake 
Governors,  United  States  Senators  and  Congressnien,  and 
under  the  forms  of  popular  government  are  practical  dic- 
tators of  the  governmental  policy  of  the  United  States,  is 
not  to  be  questioned.  They  corrupt  our  elections.  Legis- 
latures and  courts."  Mr.  Jay  Gould  testified  before  this 
commercial  body  in  1873  that  he  contributed  money  to 
control  legislation  in  four  States,  and  under  his  manage- 
ment of  the  Erie  road  spent  one  million  dollars  for  bribery 
in  one  vear.  Mr.  E.  D.  Worcester,  Treasurer  of  the  N.  Y. 
C.  &  H.  R.  R.  R.,  testified  before  the  constitutional  con- 
vention of  the  State  of  New  York  that  his  road  paid  the 
sum  of  $205,000  in  one  year  for  legislation.  Mr.  Gowen, 
the  President  of  the  Philadelphia  and  Reading  Railroad, 
made  an  argument  before  the  Committee  on  Commerce 
of  the  House  of  Representatives  on  Jan.  27, 1880,  in  which 
he  said:  "1  have  heard  counsel  of  the  Pennsylvania  Rail- 
road Company,  standing  in  the  Supreme  Court  of  Penn- 
sylvania, threaten  that  court  with  the  displeasure  of  his 
clients  if  it  decided  against  them." 

In  their  report  on  railroad  corruption  in  the  State  of 
California  the  grand  jury  of  San  Francisco"  filed  in  open 
court,  Dec.  23,  1891,  said:  "It  has  debauched  both  parties 
until  an  honest  man  cannot,  without  fear  of  contamina- 
tion, aspire  to  political  office."  The  fear  that  railroads 
would  be  in  politics  under  Government  ownership  sinks 
into  insignificance  in  the  face  of  multiplied  testimony  of 
the  political  conduct  of  the  roads  under  private  ownership. 
Many  governments  own  and  operate  their  railroads,  and 
we  can  find  no  such  instances  of  dangerous  political  cor- 
ruption. The  danger  is  not  from  Government  ownership, 
but  from  private  ownership.  Government  ownership  has 
been  a  success  whenever  tried,  and  Government  ownership 
of  railroads  in  this  country  would  take  the  roads  out  of 
politics,  with  their  corrupting  and  debauching  methods. 
Government  ownership  would  give  us  freight  rates  at  one- 
fourth  the  present  charge.  It  would  reduce  the  hours  of 
nearly  a  million  men  to  an  eight-hour  day.  It  would  cease 
overworking  the  railroad  men  and  would  employ  double 
the  number  now  employed.  It  would  reduce  passenger 
rates  to  so  low  a  rate  that  the  enjoyment  and  luxury  of 
travel  which  the  nation  would  and  could  enjoy  is  beyond 


6 

caJculation.     It  would  save  the  people  the  gigantic  snm 
of  nearly  one  billion  dollars  every  year. 

To  illustrate  how  the  railroads  charge  all  the  traffic  will 
bear  I  point  to  the  following:  In  the  month  of  March, 
1893,  a  gentleman,  whose  home  is  in  Middletown,  Conn., 
shipped  three  carloads  of  freight  from  central  Florida  to 
New  York  city.  The  cars  were  loaded  with  potatoes,  cab- 
bages and  strawberries  respectively.  The  charge  for 
freight  on  each  car  was  as  follows: 

Potatoes,  $50;  cabbages,  $55;  strawberries,  $1,080. 

During  the  past  year  a  large  number  of  fortune  seekers 
have  gone  to  the  famous  gold  region  in  the  Yukon.  The 
struggle  for  ^business  costs  the  railroad  companies  $20 
for  every  railroad  passenger  who  has  journeyed  from 
the  Atlantic  to  the  Pacific  coast.  A  case  in  point 
is  the  Klondike  party  of  six  from  Haverhill,  Mass. 
When  the  daily  papers  recorded  the  names  of  Haverhill 
fortune  seekers  they  began  to  be  flooded  with  books,  pam- 
phlets and  papers,  advertising  the  advantages  of  the 
Southern  Pacific  route,  Burlington  route,  Northern  Pacific 
route,  etc.  This  was  followed  by  a  personal  visit  of  six 
travehng  passenger  agents  representing  six  trunk  lines. 
They  were  bright,  well-dressed  business  men.  These 
traveling  passenger  agents  receive  an  average  salary  of  four 
dollars  a  day.  Their  average  expense  is  fully  five  dollars 
a  day.  They  illustrated  to  the  half  dozen  prospective 
Haverhill  travelers  the  advantages  of  their  respective  roads. 
It  so  happened  that  these  six  Haverhill  passengers  went 
by  a  different  route  from  that  represented  by  any  of  the 
six  agents.  These  agents  spent  one  week  in  Haverhill  at 
a  cost  for  salaries  and  expense  of  more  than  $300.  All 
the  railroads,  big  and  little,  employ  traveling  passenger 
agents,  and  all  the  great  roads  maintain  palatial  offices  in 
all  our  great  cities,  with  rents  from  one  thousand  to  ten 
thousands  dollars  a  year — a  clear  waste. 

The  commission  system  is  simply  a  part  of  the  struggle 
for  business;  the  advertising  waste  is  also  a  part  of  this 
insane  struggle.  Under  Government  ownership  this  means 
a  saving  of  more  than  $40,000,000  a  year.  There  would 
be  a  saving  of  $25,000,000  a  year  by  dispensing  with  presi- 
dents' salaries.  The  saving  from  consolidation  of  business, 
which  would  mean  that  we  would  do  our  carrying  business 
on  the  same  principle  as  we  now  transact  our  postal  busi- 


{ 


) 


•I 
\ 


7 

ness,  would  exceed  $50,000,000.     Saving  of  retained  law- 
yers' fees,  $15,000,000  (estimated).     Mr.  C.  Wood  Davis, 
a  practical  railroad  man,  who  as  auditor  of  accounts  for  a 
large  railroad  had  a  most  excellent  chance  to  judge,  states 
that  one-tenth  of  the  passengers  carried  ride  on  a  free  pass. 
I^  this  be  true  nearly  50,000,000  passengers  annually  ride 
on  a  free  pass.    If  we  assume  that  the  distance  traveled  each 
trip  is  equivalent  to  a  two-dollar  ride,  the  direct  loss  to 
the  people  from  the  pass  evil  is  $100,000,000.     From  an 
extensive  study  of  and  direct  employment  on  the  railroads 
of  the  United  States,  I  am  convinced  that  the  pass  evil 
is  a  much  more  extensive  one  than  is  generally  imagined. 
The  40,000  retained  attorneys  travel  on  our  roads  free,  but 
without  a  written  pass,     ten  thousand  newspapers  use 
several  million  dollars'  worth  of  mileage  books  each  year 
(free).     Nearly  all  editors  ride  on  a  pass.     Saving  from 
hangers-on— officers  who  only  draw  their  salary— traffic 
associations,  etc.,  $25,000,000.     Saving  from  political  cor- 
ruption   fund,    $40,000,000    (estimated).       Saving    from 
secret  rebates  to  the  controlling  rings,  who  are  the  owners 
of  trusts,  $100,000,000.     Saving  of  the  net  profits  (aver- 
age), $350,000,000.     For  convenience  see  tabl«: 

« 

Saving  from  struggle  for  business $40,000,000  . 

Saving    from    dispensing    with    presidents' 

salaries 25,000,000 

Saving  from  consolidation  of  business 50,000,000 

Saving  from  attorneys'  fees  and  expense. ....     15,000,000 

Saving  from  pass  evil •  •   100,000,000 

Saving  from  hangers-on  and  traffic  associa- 
tions      25,000,000 

Saving  from  political  corruption  fund. 40,000,000 

Saving  from  rebates  to  trusts 100,000,000 

Saving  from  net  profits 350,000,000 

Grand  total $745,000,000 

THE  COST  OF  ONE  MILE  OF  KAILROAD. 

Ex-Governor  William  Larrabee,  of  Iowa,  gives  $25,000 
as  a  liberal  estimate  for  building  and  equipping  one  mile 
of  railroad.  An  exchange  states  that  an  American  firm 
has  recently  taken  a  contract  to  build  a  line  of  railroad 


I 

■'■  a  r 


8 

jp.faiiada  for  $8,000  per  mile.  Our  railroads  are  only 
half  built;  the  overworked  section  hands  do  the  finishing. 
This  18  not  the  ease  in  Europe.  There  they  build  the  rail- 
roads m  a  scientific  and  thorough  manner.  General  Leese^ 
of  Lincoln,  Neb.,  gives  as  the  cost  of  one  mile  of  railroad, 
based  on  the  purchase  of  the  Union  Pacific  Railway,  as 

folloWfS!  •'' 

Ninety-five  ions  steel  rails,  60  pounds  to  the  yard, 

at  $20  per  ton *  $2  850 

2,500  oak  ties  at  65  cents  each ..........[  1*625 

12,800  pounds  angle  bar  joints  at  2  1-2  cents.  /...,  '320- 

1,400  pound  bolts 75 

2,500  pounds  spikes  at  2  1-2  cents .' .'. . . .  ] . .  ]  65 

12,000  yards  grading  at  15  cents  a  yard !  1,800 

24  acres  of  right  of  way  at  $50  per  acre 1,^200 

1  mile  of  engineering  at  $200 '2OO 

1  mile  of  track  laying  at  $200 .....[  20O 

1,280  rods  of  fencing  at  50  cents  per  rod 640 

1  mile  of  bridging  at  $1,000 I^OOO 

Cattle  guards ]  \qq 

Station  houses ]^0O 

Round  houses,  machine  shops,  water  tanks  and 

wind  mills 3O0 

Depot  grounds  per  mile ]  *  loa 

Sidings  and  switch  tracks  per  mile 1,025 

Grounds  for  terminal  facilities  per  mile I'oOO 

Equipment,  including  rolling  stock  per  mile 3^000 

Depot  buildings 250 

Stock  yards 40 

Coal  sheds  and  machinery  for  same lOO 

Total  for  one  mile  of  rojid $15,98^ 

In  a  recent  lawsuit  the  Union  Pacinc  proved  that  the 
average  cost  of  building  the  Utah  Central  was  $7,298.20 
per  mile.  It  has  been  stated  that  the  Missouri  Pacific 
road  cost  less  than  $10,000  per  mile.  It  is  self-evident 
that  a  double  or  four-track  road  can  be  built  much  less  per 
mile,  relatively,  than  a  single  track. 

ACROSS  THE  CONTINENT  FOR  ONE  DOLLAR. 

By  the  elimination  of  profit  and  waste,  a  four-track  road 
can  be  built  for  an  average  of  $15,000  per  mile.    But  let 


\ 


MB  place  the  cost  of  $2SXfiOO  per  mile.  The  distance  fromt 
Boston  to  San  Francisco  is  3,450  miles;  a  four-track  road 
would  be  13,800  miles.  To  this  add  1,200  miles  of  sidings^ 
and  we  have  a  total  of  15,000  miles,  a  total  cost  of  $300,^ 
000,000  for  a  four-track  road  across  the  continent.  The 
cost  to  operate  such  a  road  for  one  year  would  be  as  fol- 
lows: Wear  and  tear  of  road  and  equipment  (10  per  cent)^ 
$30,000,000;  wages  of  150,000  men,  at  $4  per  day  for  eight 
hours'  work  per  day,  365  days  in  a  year,  $219,000,000. 
This  gives  the  men  an  annual  salary  of  $1,460  a  year,  and 
as  ten  men  per  mile  is  more  than  double  the  number  now^ 
employed  on  our  railroads,  we  could  give  each  man  a  two- 
weeks'  vacation  each  year.  The  cost  of  fuel,  oil,  etc., 
would  be  not  over  $10,000,000  a  year— a  grand  total  cost, 
of  $259,000,000  annually  for  expense.     Let  us  estimate- 

*\  the  income  of  such  a  road. 

The  average  charge  for  moving  a  ton  of  freight  lOO 

t  miles  in  this  country  is  a  trifle  less  than  one  dollar.  By 
reducing  freight  charges  to  25  cents  per  ton  per  lOO 
miles,  the  increase  in  business  would  be  tremendous.  It 
is  a  conservative  statement  to  place  the  number  of  freight 
cars  on  this  road  at  150,000.  If  we  average  fifteen  tons 
to  the  car  we  will  transport  2,250,000  tons  of  freight  10 
miles  per  day,  an  income  of  $562,500  per  day.  If  wfr 
reckon  350  days  in  a  year  in  which  freight  is  transported 
we  have  an  income  from  freight  of  $194,875,000  each  year. 
Cheap  passenger  rates  always  result  in  a  great  increase  in 
passenger  travel.  If  we  charge  at  the  rate  of  3  cents  for 
each  100  miles,  or  across  the  continent  for  one  dollar,  it 
would  be  .a  low  estimate  to  reckon  150,000,000  passengers, 
a  year,  or  an  income  from  passengers  of  $150,000,000.  It 
may  here  be  stated  that  such  rates  would  more  than  likely 
see  double  this  number,  or  300,000,000  passengers,  carried 
on  this  road  each  year.  Such  a  road  would  be  the  main  route 
between  the  Atlantic  and  Pacific,  and  would  save  to  the- 
people  more  than  $6,000,000  annually.  The  express  busi-^ 
ness  on  such  a  road,  with  cheap  rates,  would  earn  $4,000,- 
000  annually— a  total  income  of  $354,875,000,  and  a  totaJ 
net  profit  of  $95,875,000.  Four  years  of  profits  would 
more  than  pay  for  the  entire  15,000  miles.  Let  the  people- 
once  realize  the  magnificent  advantages  of  a  Socialistic 
railway  and  the  change  from  railroad  ownership  of  the 
Government  to  Government  ownership  of  railroads  will 


iO 

€ome  swift  and  sure.    Let  us  cross  the  continent  for  one 
dollar. 

A  practical  railroad  man  has  recently  declared  that  a 
flat  rate  of  5  cents  for  passenger  fares,  regardless  of  dis 
tance  traveled  in  any  one  direction,  would  more  than  pay 
expenses.       The  Government   has  already   demonstrated 
that  it  is  possible  to  carry  and  deliver  letters  at  2  cents.  /] 
Passengers  take  care  of  themselves. 

If  the  reader  will  carefully  investigate  what  has  been 
accomplished  by  Government  ownership  of  railroads  in 
other  countries  an  object  lesson  will  be  presented,  and,  as 
''^nothing  succeeds  like  success,"  it  is  important  that  we 
note  the  success  in  this  direction.  It  may  be  noted  that 
CJreat  Britain  and  the  United  States  are  the  only  two  first- 
class  nations  tlyit  do  not  own  and  operate  some  of  their 
railways.  Great  Britain  will  nationalize  her  entire  rail-, 
way  system  in  1905.  Already  fifty-four  governments  own 
and  operate  100,000  miles  of  railroad,  and  in  comparison 
with  private  ownership  it  is  proved  to  have  been  a  great 
success  in  every  case. 

THE  GERMAN  RAILWAYS. 

The  German  government  first  assumed  ownership  in 
1843,  and  since  1848  has  owned  nearly  all  the  railways. 
The  roads  are  built  seemingly  for  all  eternity,  the  cost 
of  construction  being  nearly  double  that  in  the  United 
States.  Some  of  the  reasons  for  the  great  cost  being — 
changing  watercourses,  solid  stone  bridges,  the  building 
of  gas  works  for  lighting  stations,  splendid  water  service, 
passing  through  fortifications,  etc.  Statistics  for  the  year 
1890  show  a  net  profit  from  operating  the  roads  of  $119,- 
159,147.  This  was  for  some  2,300  miles  of  track.  The 
average  passenger  fare  is  .0117  cents  per  mile,  or  less  than 
one  and  one-fifth  cents.  The  fare  by  means  of  commuta- 
tion tickets  for  third-class  travel  is  at  the  rate  of  foui  ', 
miles  for  1  cent.  Sixty  per  cent  of  the  German  railway 
passengers  travel  third  class.  The  total  income  from  pas- 
sengers for  the  year  1890  was  $84,976,840.42.  Therefore 
the  German  government-owned  railways  could  have  car- 
ried the  426,056,250  passengers  absolutely  free  and  still 
have  a  net  profit  of  $34,182,307.09.  From  1882  to  1892 
the  net  profit  increased  41  per  cent,  and  the  wages  are  J 


11 


) 


lij 


121  per  cent  higher  than  under  private  ownership.  The 
railways  cost  an  average  of  $92,085.99  per  mile,  a  sum 
more  than  three  times  what  it  would  cost  the  government 
to  duplicate  them  to-day. 

Had  the  German  government  built  all  her  railway  sys- 
tem, saving  the  profit  on  construction  and  the  profit  on 
sale  of  roads,  extra  interests,  etc.,  she  could  have  reduced 
her  freight  and  express  rates  one-half,  carried  passengers 
free,  increased  the  wages  of  the  employes  $100  a  year  and 
made  both  ends  meet.  Capitalists  and  their  paid  attorneys 
and  the  daily  press  often  use  as  an  argument  against  Gov- 
ernment ownership  the  lower  rates  of  wages  which  prevail 
on  the  government-owned  railw^ays  of  Europe,  as  compared 
to  the  wages  paid  on  the  private-owned  railways  of  this 
country.  We  should  compare  the  wage  rate  under  private 
and  public  ownership  in  the  same  country.  There  are 
thirteen  men  pft*  mile  employed  on  the  railways  of  Ger- 
many and  only  a  fraction  over  four  on  those  of  the  United 
States.  The  government-owned  railways  average  to  em- 
ploy double  the  number  of  hands  per  mile  that  the  private 
railways  employ. 

THE  AUSTRO-HUNGARIAN  RAILWAYS. 

The  Austro-Hungarian  empire  owns  and  operates  11,300 
miles  of  railroad  and  boasts  of  having  the  finest  railway 
system  in  Europe.     The  roads  cost  $93,618.77  per  mile. 
Eleven  men  per  mile  are  employed.     The  total  income 
from  the  operation  of  these  roads  in  1898  (last  report  ob- 
i  tainable)  was  $107,714,023.60.     Total  expense,  $57,256,- 
141.60—^7,364,104.80  of  the  expense  being  funds  paid 
into  the  sick,  aid  and  pension  fund  for  railway  employes. 
A  net  profit  of  over  fifty  million  dollars  a  year,  and  this 
with  the  cheapest  railway  fare  in  Europe.     From  Buda- 
pest to  Cronstadt,  a  distance  of  457  miles,  the  fare,  third 
i  class,  is  $1.53.     But  in  case  of  agricultural  laborers  travel- 
Jing  in  parties  of  ten,  or  workingmen  in  parties  of  thirty 
!  or  more,  the  fare  is  one-half,  or  six  miles  for  1  cent.     For 
several  years  the  Zone  system  has  been  in  operation,  with 
the  result  of  greatly  reduced  fares  and  a  great  increase  in 
the  number  of  passengers  carried  and  an  increase  in  the 
Inet   income  to   the   government.      The  Zone   system  is 
)  divided  into  sections  or  belts  of  distance  from  Budapest, 
the  center. 


Jl 


12 

The  first  zone  extends  a  distance  of  13.73  miles,  each 
succeeding  zone  up  to  the  twelfth  being  seven  and  one-half 
miles  longer  than  the  zone  immediately  preceding  it,  the 
twelfth  and  thirteenth  zones  being  13.73  miles  longer  than 
its  preceding  one.  All  distances  from  the  thirteenth  zone 
are  included  m  the  single  and  last  zone,  the  fourteenth. 
J  ickets  are  not  sold  at  so  much  per  mile,  but  so  much  per 
zone,  the  charges  being  less  from  Budapest  for  each 
additional  zone,  thus  being  a  great  help  to  the  sparselv] 
settled  districts.  ^^ 

THE  HOLLAND  RAILWAYS. 

Holland  is  a  small  country,  having  only  12,680  square 
miles  and  a  population  of  4,450,870.     No  country  in  the 
world  enjoys  such  an  extent  of  water  navigation,  there 
being  more  than  5,000  miles.     Of  the  l,g39  miles  of  rail- 
way  in  Holland  the  state  owns  and  operates  986.     It  is 
only  a  question  of  time  when  Holland  will  own  the  entire 
railway  system.     Even  now  she  holds  tliat  the  private- 
owned  roads  are,  and  of  right  ought  to  be,  public  property,! 
and  she  keeps  a  sharp  eye  on  them.     State  railways  are 
much  more  important  per  mile  than  those  under  private 
ownership.     They  transport  five-sevenths  of  the  freight 
and  nearly  two-thirds  of  the  passengers.     The  state  to  a 
large  extent  looks  after  the  welfare  of  the  railway  workers 
J  hey  are  given  houses  at  from  12  to  20  per  cent  less  than 
the  same  houses  would  rent  of  private  owners.     And  thos^ 
who  receive  the  least  wages  are  given  fuel  free.     The  state 
employs  the  widows  of  men  former) v  in  the  service  of  the 
railroad  in  manufacturing  clothing/blankets,  etc.,  for  the 
families.     The  state  railway  also  has  a  sick  and  pension 
tund.     Each  worker  contributes  to  this  fund,  as  also  does' 
the  state.     The  children  of  the  railway  workers  are  carried 
free  both  to  the  common  schools  and' the  distant  colleges. 
At  the  age  of  65  the  workers  are  discharged  from  service, , 
and   a  pension   during  the  remainder  of   their   lives   is 
regularly  paid  them.     Just  imagine  a  Sage  or  a  Gould 
giving  their  railway  slaves  a  pension!  ! 

IN  AUSTRALIA. 

Victoria  is  one  of  the  most  progressive  states  of  Aus- 
tralia.    She  has  a  population  of  nearly  1,250,000.     The 


P 


13 

railways  all  belong  to  the  state.  The  date  of  government 
ownership  began  in  1854,  and  in  1892  she  owned  and 
operated  2,903  miles.  In  an  editorial  published  Feb.  9, 
1890,  the  San  Francisco  Chronicle  said:  "Instead  of  let- 
ting corporations  build  the  railroads  and  giving  land  away 
to  induce  them  to  do  this,  Victoria  has  kept  its  land  and 
built  its  own  railways.  *  *  *  It  will  not  be  many 
years  before  the  profits  on  the  railroads  will  pay  all  the 
ixpenses  of  government."  Notwithstanding  that  the  wage 
late  in  Victoria  is  higher  by  30  per  cent  than  in  the 
jjnited  States,  the  railway  in  the  former  cost  only  one- 
Aalf  as  much  per  mile  as  those  of  the  latter  are  capitalized 
it.  The  people  of  Victoria  enjoy  cheap  rates  for  pas- 
lenger  travel,  and  yet  the  total  income  for  the  year  1892 
.vas  $15,425,610,  and  the  total  expenses  were  $10,690,695, 
a  net  profit  of  $4,784,915,  or  over  $1,648  per  mile,  and 
this,  too,  with  rates  at  one-third  of  a  cent  a  mile  for  pas- 
senger travel.  If  our  railways  had  been  owned  by  the 
people  a  net  profit  of  $1,648  per  mile  would  have  given  us 
a  profit  of  $296,480,000,  with  eight  hours'  work,  and  we 
could  ride  three  miles  for  1  cent. 

Compared  with  its  population,  no  country  in  the  world 
carries  so  many  passengers  as  the  railways  of  Victoria. 
Eight  hours  constitutes  a  day's  work  on  all  the  Australian 
railways. 

In  all  such  nations  as  Victoria,  Austro-Hungary,  Ger- 
many, etc.,  great  attention  is  given  to  the  adoption  of  safety 
devices  such  as  interlocking  switches,  safe  automatic  coup- 
lings, etc.,  and  all  stations  and  crossings  are  provided 
w^ith  gates  and  guarded.  In  a  word  the  railways  of  Vic- 
toria are  operated  for  the  convenience,  comfort  and  safety 
of  railway  users  and  employes. 

A  rigid  examination  as  to  qualifications  and  character 
I  are  required  from  all  who  enter  the  railway  service  of 
Victoria.  All  employes  who  may  be  disabled  or  worn  out 
by  long  service  are  pensioned  by  the  government. 

NEW  ZEALAND. 


New  Zealand  has  a  population  of  some  700,000.    Her 

railways  are  not  only  owned  by  the  state,  but  nearly  all 

were  built  by  the  state.     The  experiment  has  been  a  long 

H  one,  dating  back  to  1863.     The  number  of  miles  of  rail- 


( 


\ 


14 

way  in  operation  in  1893  was  1,886.  The  net  profit  for 
the  year  1893  was  $2,246,900.  The  wages  of  the  employes 
average  30  per  cent  higher  than  those  paid  on  the  railways  i 
of  the  United  States.  You  can  ride  thirty  miles  for  10 
cents.  The  annual  profits  from  the  railroads,  postal  tele- 
graph, telephone  and  express  are  sufficient  to  pay  all  the 
federal  taxes.  Notwithstanding  the  great  extent  of  the 
country  and  its  sparse  population,  first-class  service  is 
rendered  the  people. 

New  Zealand  has  made  more  progress  for  equal  laws 
and  equal  opportunities  than  any  other  nation  in  the  world] 

They  have  an  eight-hour  workday  with  a  half  holiday 
in  every  week,  besides  six  full  holidays  in  the  year  undei 
full  pay. 

There  is  less  poverty  and  misery  (per  capita)  in  Victoria^ 
than  in  any  other  nation  in  the  world.  In  fact,  there  has 
been  so  much  socialistic  legislation  that  there  is  not  a 
millionaire  in  New  Zealand. 

THE  PACIFIC  RAILWAY  ROBBERY. 

When  the  full  history  of  the  Pacific  railroads  shall  be 
written  the  world  will  read  the  story  of  the  most  gigantic 
system  of  railroad  piracy  ever  concocted  in  the  mind  of 
man.  The  six  roads — Union  Pacific,  Kansas  Pacific,  Cen- 
tral Pacific,  Sioux  City  and  Pacific,  Central  Pacific  and 
Western  Pacific — embrace  21,495.05  miles.  The  total  cost 
was  $95,955,347.  They  are  capitalized,  stock  and  bonds, 
for  $268,302,462,  or  172,347,115  of  "water.''  This  does 
not  show  the  real  robbery,  as  the  roads  were  paid  for  by 
the  public,  and  the  six  Pacific  roads  cost  the  band  of 
pirates  barely  nothing.  In  fact,  the  stock  paid  in  was  only 
$1,797,350.  These  six  roads  received  aid  from  the  United 
States  in  bonds,  interest  and  land  grants  to  the  vast  sum 
of  $447,729,470.54.  States,  towns,  cities  and  counties 
gave  other  vast  sums,  the  city  of  Sacramento  ffiving  nearly 
$2,000,000.  '^ 

The  reports  of  these  companies  show  a  profit  or  net 
earnings  of  $278,023,357.63,  equal  to  $15,000,000  a  year. 
Nearly  $26,000,000,  not  reckoned  in  the  above  earnings, 
were  paid  out  for  subsidies,  pools,  rebates,  overcharges, 
etc.  The  Central  and  Union  Pacific  have  paid  to  the 
Pacific  Mail  Steamship  Company  over  $4,000,000  to  maia- 


16 

tain  high  rates.  Thus  these  roads  have  conspired  to  main- 
tain an  exorbitant  rate  on  both  freight  and  passenger 
traffic,  and  have  in  thirty  years  robbed  the  public  of  mil- 
lions upon  millions. 

According  to  the  report  of  ex-Governor  Pattison,  had 
.,  those  roads  been  built  and  managed  upon  honest  methods, 
\  they  could  have  paid  every  debt  in  full,  paid  dividends 
on  stock  and  land  sales,  and  have  property  free  from  debt 
to  such  an  amount  that  each  dollar  would  have  yielded 
$6.18,  and  three  of  these  roads  could  have  reduced  their 
charges  $140,000,000  to  shippers.  The  people  of  the 
United  States  have  already  been  robbed  of  more  than 
$500,000,000  by  these  six  roads." 

These  are  facts.  Compare  the  question  of  the  public 
ownership  of  railways  with  the  petty  issues  which  engage 
the  attention  of  out  alleged  statesmen!  No  party  which 
ignores  this  issue  deserves  to  receive  the  support  of  those 
who  are  alive  to  the  importance  of  this  question,  and  to 
the  imperative  necessity  of  public  rather  than  private  own- 
ership of  natural  monopolies. 

Your  duty,  reader,  is  to  make  converts  to  the  principles 
of  the  Government  ownership  of  railroads  and  all  other 
means  of  distribution.  The  collective  ownership  c.nd  oper- 
ation of  the  iron  highways  is  one  step  in  the  direction  of 
the  greatest  and  grandest  free  republic  that  is  to  be. 
Every  honest  effort  should  be  made  to  spread  the  light. 


NOTICE. 


Those  who  wish  to  investigate  further  or  who  may  be 
interested  in  the  great  cause  of  Socialism  are  invited  to 
write  to  F.  G.  R.  GORDON,  Manchester,  N.  H. 


HARD  TIMES— CAUSE  AND  CURE. 

A  32-page  pamphlet  giving  a  clear  explanation  of  the 
cause  and  cure  of  hard  times,  written  by  F.  G.  R.  Gordon. 
Sample  copies  sent  for  3  cents;  price  per  hundred  $1.50. 
Address  F.  G.  R.  GORDON,  Manchester,  N.  H. 


I  nil  tn.r'ni^ 


SOCIALISn 

UTOPIAN  AND  SaENTIPIC 


By  Frederick  Engels 


Translated  by 
BDWARD  AVBLINO,  D.  5e. 

This  little  volume  is  an  exact  reproduction  of 
the  standard  English  translation  of  one  of  the 
most  noteworthy  books  of  the  nineteenth  cen- 
tury. To  Engels  scarcely  less  than  to  Marx  is 
-due  the  impetus  to  clear  thinking  which  has 
placed  the  Socialism  of  continental  Europe  in  a 
•commanding  position,  where  it  is  recognized  as 
the  hope  of  the  workers  and  the  terror  of  the  rul- 
-ers.  SociAWSM  Utopian  and  Scientific  has 
been  translated  into  the  language  of  every  capi- 
talist nation,  and  wherever  it  has  gone  it  has 
been  an  inspiration. 

In  America  it  has  thus  far  been  known  by  the 
rather  expensive  edition  (imported  by  Charles 
Scribner's  Sons)  from  which  this  edition  is  re- 
-printed,  and  by  an  earlier  and  somewhat  inferior 
translation,  printed  in  fine  type  and  published 
without  the  remarkable  introduction  written  by 
Engels  in  1892  and  here  presented. 

The  appendix  on  the  origin  of  the  German 
lilark  has  been  omitted  from  the  present  edition 
for  the  reason  that  the  development  of  agricul- 
ture in  this  country  has  been  so  different  from 
thit  in  Europe  that  this  appendix  would  be  more 
-confusing  than  helpful  to  the  average  American 
reader. 

BKkti  Edition^  125  Pagts,  CU/tk,  30  ctnft: 
PmP*r,  to  cents,  postpaid. 

CHARLB5  H.  KERR  A  COnPANY.  Publishers 
86  Fifth  Ave.,  CHICAQO 


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